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Tinashe Makichi, Business Reporter
CRESTA Hotels has invested US$8 million towards developing its hotels despite the current liquidity crunch. Cresta Hotels chief executive Mr Glenn Stutchbury yesterday said that liquidity issues were currently taking a toll on the hotel industry and this had temporarily affected plans to develop some of their infrastructure.
“The issue of liquidity has been affecting our industry and we are working hard to make sure that confidence in the sector increases since it is one of the main drivers of the economy. We committed ourselves to many projects as a company and some of them were capital intensive. We have made an US$8 million capital investment on developing our infrastructure and we also have some projects outside the main ones,” he said.
“Some of the money on the investment went towards the refurbishment of Sango Conference Centre and New Cresta in Victoria Falls.”
The group expects the projects to start returning profits this year in a move which will instil confidence among the shareholders.
“Hotel investments are not short term. Our biggest challenge in the industry is finding long term finance,” Mr Statchbury said.
Online Reporter